From: EVAValue [mailto:EVAValue@msn.com] 

Sent: Friday, March 18, 2011 4:55 PM 

To: EBSA, E-ORI - EBSA 

Cc: mimohr.e.d.rita@comcast.com; Kelli Click; Sean O'Scanlon 

Subject: Proposed Fiduciary Regulations

18 March 2011

To The Dept. Of Labor,

Re: Proposed Fiduciary Regulations

  

ERISA Valuation Associates (aka Equity Valuation Associates) has been in

the fee based independent valuation business since 1993.  It is EVA's

experienced and expert opinion that trust companies that provide

investment record keeping services to retirement plans and IRAs should not

be considered fiduciaries.  Our reasoning is simple.  These record keeping

trust companies do not control or influence the selection and maintenance

of the investments.  Therefore they should be exempted from the proposed

fiduciary regulation.  

  

There is a problem in that many of the limited partnership, LLC, and closely

held stock values listed on trust account statements are inaccurate.  There

is a plan and IRA funding problem due conflicts of interest, hidden fees, and

inappropriate investments.  That is not the fault of the record keeping trust

company as custodian!  It is also usually not the fault of the investor, plan

administrator, and/or trustee.  However, it is the fault of the management

of the investments who are giving the investors, plan administrators, and

trustees erroneous values which are then getting forwarded to record

keeping trust companies as the custodians.   

  

Making the record keeping trust company custodian a fiduciary and

therefore responsible for the accuracy of the values and appropriateness of

the investment does not solve the valuation and other investment

problems, as it does not address the problem at its source ‐ the investment

management.   

  
The solution is to focus the proposed DOL fiduciary regulations on the firms

and individuals that give advice and sell investments to retirement plans

and IRAs.  The DOL needs to by‐pass firms such as custodial record keeping

trust companies and regulate directly these investment firms by requiring

them to obtain annual independent valuations for the investments sold to

any type of retirement plan or IRA.  This simple straight forward

requirement will greatly reduce the investment abuse that the DOL is

attempting to curtail with the new proposed fiduciary regulations.

Does EVA consider itself a fiduciary?  We most certainly do.  This position is

based on the fact that our valuations are important tools in the

maintenance of the plan and IRA investments.   

In summation, the Dept. of Labor needs to attack the root of the problem, ‐ 

the investment firms and individuals, thus implementing a fiduciary

regulation that which will be relatively easy to enforce and more affective

in protecting plan and IRA participants and beneficiaries.

  

Please route this email within your agency as you feel appropriate.

Sincerely yours,

John O'Scanlon 

President

 

John O'Scanlon

Equity Valuation Associates

aka ERISA Valuation Associates

Main Office

930 Tahoe Blvd., Suite 802‐386

Incline Village, Lake Tahoe, NV  89451

Tel: (808) 637‐8480

Fax: (808) 637‐8482

Email: EVAValue@msn.com

Website: www.EquityValuation.biz

 
Branch Office

68‐287B Crozier Loop

Waialua, Hi 96791